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Every company belonging to such class or classes of companies as may be prescribed shall have the following whole-time key managerial personnel—
(i) managing director, or Chief Executive Officer or manager and in their absence, a whole-time director; (ii) company secretary; and (iii) Chief Financial Officer.
The KMPs are responsible for taking crucial company decisions and managing the employees. They are also liable when the company does not follow the mandatory compliances laid down by the Act.
According to sub-section 60 of section 2 of the Companies Act,2013 Key Managerial Personnel is considered as an officer in Default for any provision in this Act which enacts that an officer of the company who is in default shall be liable to any penalty or punishment by way of imprisonment, fine or otherwise.
Key employees can reduce your workload, noticeably improve company performance and operations, and act as the backbone of a successful business sale in the future.
Form DIR-12 is required to be filed by Company for Resignation of Key Managerial Personnel.
Rule 8 (2) of the Companies (Meeting of Board and its Powers) Rules, 2014 prescribed that the appointment or removal of key managerial personnel (KMP) shall be done at meeting of the Board only.
